Delhi HC says IRFC Financing Does Not Make Every Rolling Stock Transfer Taxable

The Delhi HC drew a critical distinction between rolling stock manufactured or purchased by the Railways in its own right and stock procured by the Railways on behalf of IRFC. 

While the former can constitute a taxable sale to IRFC, the latter involves no sale by the Railways. The Court therefore set aside composite demands of ₹533.79 crore and directed a limited, time-bound exercise to segregate the transactions.